(PresidentialInsider.com)- Moderate Democratic Senator Joe Manchin says that he made a mistake with the last massive spending bill to be passed using budget reconciliation. While he said it wouldn’t affect inflation, he apparently has changed his stance.
That being said, the West Virginia senator recently came to an agreement with Senate Majority Leader Chuck Schumer on the major parts of another big spending bill revolved around taxes and climate change that is likely to be pushed through the upper chamber using budget reconciliation again.
Through that process, the Senate will need no support from Republicans, as long as all 50 Democratic members of the Senate sign on. If the bill passes, it would be sent to the House for a full vote, followed by President Joe Biden signing it into law.
On Sunday, Manchin appeared on Fox News Sunday to explain his reasoning behind supporting this latest bill. Bret Baier, the host of the show, point-blank asked the senator how the new bill he’s supporting won’t “exacerbate inflation” even more.
“I’ll make sure I don’t make that mistake again. Bottom line, I’ll make sure I didn’t make that mistake again.”
Many economic pundits have said that this new spending bill by the Democrats will end up raising taxes on many Americans, even as the liberals claim it won’t do that. Manchin himself even said:
“It does not raise taxes … All it does is close loopholes.”
Manchin was the one Democratic senator who shot down the hopes of the progressive wing of his party for passing President Joe Biden’s massive Build Back Better spending plan. The original version of that bill was set to cost approximately $3 trillion.
Biden and some Democratic leaders worked hard to whittle down the bill to what Manchin could stomach, but he ultimately torpedoed it late last year.
After much negotiation, though, they finally got the West Virginia senator on board with the spending bill, called the Inflation Reduction Act of 2022. This bill will only cost roughly $433 billion, a far cry from what many Democrats were hoping for when Biden took office.
Included in the bill is a new 15% corporate minimum tax for any business that is worth at least $1 billion. That alone is estimated to bring in $313 billion in revenue for the federal government to partially offset the cost of the new bill.
In addition, increased enforcement at the IRS is estimated to bring in $124 billion. By closing a loophole regarding carried interest, another $14 billion is expected to be raised.
Yet, despite the fact that the federal government will indeed be collecting new taxes it hasn’t done in the past, Manchin continued to insist that all the bill does is “close loopholes” and not enact new taxes.
There are many other parts of the plan, including enhanced subsidies for purchasing electric vehicles and for people who sign up for health care on one of the public exchanges under the Affordable Care Act.